10 - Taxation Flashcards
What 2 investing services have VAT charged at the standard rate?
Portfolio Management fees & Investment advice
What is the rate of SDRT?
0.5% of a share purchase over £1000
What are the 3 main characteristics of capital losses?
-They must be offset against any gains in the same year before the annual exemption is used
-Losses carried forward need only be used after the annual exemption is used up
-Net capital losses in the year of death can be carried back for up to 3 years
What are the 3 tax brackets?
-Basic rate (20%) up to £37,700
-Higher rate (40%) up to £150,000
-Additional rate (45%) over £150,000
How is the nil rate band passed on through generations?
The percentage nil rate band is passed on to inheritors
What is the immediate income tax relief given to an investor in an Enterprise Investment Scheme (EIS)?
30% but with a 3 year holding period
What is the main FATCA requirement?
FATCA requires all foreign financial institutions (FFIs) to provide information about their US customers to the IRS
What is the personal allowance?
£12,570 for salaries below £125,140
What percentage of a single premium life assurance bond can be taken from the original capital as income per annum on a tax deferred basis?
5% plus any unused allowance from previous years
For Non-doms living in the UK, what asset transfer is considered a ‘chargeable transfer’ for UK IHT purposes?
Any transfers of UK assets
What is the UK Corporation tax rate?
19%
When is inheritance tax (IHT) paid?
IHT is paid on death and may be paid in life on a chargeable lifetime transfer
How is the personal allowance reduced for salaries over £100k?
Personal allowance is reduced £1 for every £2 earned over £100k
What is the maximum annual VCT subscription to attract tax relief?
£200,000
To whom can you transfer money and be exempt from IHT?
Spouse/civil partner
